2
General Economic Conditions GDP slows to 0.6% in fourth quarter – nearly flat January 2008 nonfarm payrolls decline for the first time since August 2003 Inflation rises at a 2.7% annual rate in the fourth quarter, the fastest pace of inflation in six quarters

3
General Economic Conditions The Fed has now cut rates five times by a cumulative 2.25 percentage points. Many economists think we face a potentially serious recession The stimulus package – too little, too late?

4
Markets Bursting Bubbles – Existing home sales at lowest levels in 9 years – down 13%. – Home prices – National median price declines for the first time in the 40-year history of survey. No hard data before that but probably the first decline since the Great Depression. What does this mean for the apartment sector? Commercial real estate in general?